Finance

Dear Friends, Thank you for the difference you have made! We are tremendously grateful for your faithful support, and pleased that you have chosen to make the First Presbyterian Church of Naples a part of your life of discipleship and generous giving. In spite of the pandemic impacting our church operations for nearly a full year, FPC’s finances remained strong primarily due to your generosity, good cost control measures, and cash management. As we look back on 2020, we’d like to pause for a moment to appreciate some of the high points of this challenging year. December 31, 2020 year-end summary • 2020 net income $60,947 vs. 2019 net income $20,224 • Offerings were up 13% from the prior year which was able to offset reduced preschool income and reduced

Unrestricted Endowment transfers typically needed to help cover operating expenses • Expenses were held to 2019 levels and were slightly down (2%) from the prior year; expenses were (14%) underbudget in 2020 • Preschool – although income was down (21%) from last year as a result of following COVID-19 CDC recommendations for reduced class sizes, expenses were also down because of savings from an unfilled teaching position and other expense reductions; 2020 net loss was $(34,426) Under normal circumstances, the preschool has been net income positive in recent years Endowment value $7.3M as of December 31, 2020 vs. December 31, 2019 $6.5M • $810k YOY increase in value • Increase due to unrealized gains from overall stock market gains, realized gains from securities sales, and donations, the sum total of which exceeded decreases of transfers out to operating and capital funds, and management fees • Less dependency on Endowment for operating expenses and capital expenditures • Total Budgeted Unrestricted Endowment transfers to both the operating & capital funds were limited to $153,052 or 2.5% of the Unrestricted Endowment balance measured at 01/01/2020 • Operating fund transfer was $125,000 rather than the full budgeted amount of $250,000 • Capital fund transfer was $28,052 rather than the full budgeted amount of $136,425; capital spending was halted in March due to COVID-19 related cost control and cash management measures, except for essential items; pew seat cushion amounts spent pre-pandemic were not funded as the expectation will be to fund through a 2021 Pews & Playground mini-campaign Other 2020 highlights • Successful Annual Audit/Review (Review for 2019); “clean report” • At a recommendation from the Finance Committee, Session voted to not participate in the Paycheck Protection

Program (PPP) loan program • All employees remained employed and were paid full wages throughout the pandemic, and a modest Christmas bonus at year-end • Exceptional giving response to Coronavirus Emergency Relief Fund (CERF), $112,565 collected and $74,000 disbursed; remainder to be disbursed in 2021 • Total Missions disbursements were $317,176 (includes CERF giving and support to Peace River Presbytery) • 2021 Budget approved by Session Looking forward to 2021, we are energized by the spirit of our extraordinary church community and look forward to the opportunities ahead. Your generosity ensures that we will continue to flourish in our ministries and stay strong in our finances. On behalf of our entire community, we send our deepest “thank you” for your generous support of the First Presbyterian Church of Naples!

With gratitude, Anna Focht Director of Finance

Doug Jensen Finance Committee Chair